Healthy Eating Pty Ltd (Healthy Eating) is a company that runs a chain of food outlets in shopping centres throughout Australia that offer healthy food alternatives to shoppers. The outlets operate under the brand 'Good Choice', which the company developed when it commenced operations and set up its first food outlet at Chadstone Shopping Centre in 2017.

In 2021, the founder and CEO of Healthy Eating, Libby Spencer, decided to expand its operations by entering into the market of delivering pre-prepared healthy meals to homes. As part of its expansion plan it acquired Positive Lifestyle Pty Ltd (Positive Lifestyle), which had already established itself in the food delivery market in Sydney and Melbourne. Healthy Eating paid \$4 million for Positive Lifestyle, of which \(\$ 500,000\) was for the existing customer list Positive Lifestyle had developed and \$1millionfor the 'Fast ' \(n\) ' Fresh' brand that the food delivery service operated under. Since acquisition, Libby Spencer has changed the home delivery food menu and, in doing so, expanded the customer base by \(25 \%\).

Looking to expand its food outlets to shopping centres in New Zealand, and expand its home delivery service to the remaining capital cities in Australia, Libby Spencer aims to raise capital to finance these expansions by listing on the Australian Stock Exchange. In preparing for its initial public offering, Libby hires an independent valuation firm to determine the current value of each brand and the customer list. The valuation report estimates that the amount a prospective buyer would be willing to pay for the 'Good Choice' brand, the 'Fast ' \(n\) ' Fresh' brand and the customer list is \(\$ 5\) million, \(\$ 1.5\) million and \(\$ 625,000\), respectively.
Required Libby has come to you with the independent valuation report, requesting that you record the valuations in the accounting records of Healthy Eating. Libby argues that these values are useful to prospective investors and will assist in the company raising the funds it needs to expand operations. Advise Libby whether these values can be used in accounting for the brand names and customer list under AASB 138 Intangible Assets.